Staying on reforms course critical for post-bailout Greece: analysts

Source: Xinhua| 2018-08-13 23:09:13|Editor: yan
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ATHENS, Aug. 13 (Xinhua) -- Greece should stay fully committed to the reforms course after the forthcoming exit on Aug. 20 from the bailout era, in order to boost confidence in the prospects of the economy, according to a local bank report.

"The Greek economy's exit from the third bailout program (since 2010) is a significant step forward for the country's return to international capital markets," said financial analysts from Alpha Bank in the latest weekly report on Greece's economic outlook posted on the lender's website.

"The enhancement of confidence in the country will hold a critical role in this effort. The full implementation of agreed reforms is a prerequisite to attract investments and create job positions," they suggested.

Confidence indicators have improved after a painful process of fiscal adjustment and structural reforms requested by international lenders in exchange for multi-billion euro aid packages to keep the debt-ridden economy afloat and in the euro zone, according to the experts.

The gross domestic product (GDP) has returned to growth in recent months, the business sentiment index, the tourism industry and other sectors have exhibited positive trends, and Greece is leaving the bailout period with a cash buffer of some 24.1 billion euros (27.5 billion U.S. dollars), enough to cover the country's financial needs for the next 22 months, the analysts noted.

However, it remains very important to send the right messages to markets, which will be continuously evaluating the country, Frangiskos Koutentakis, head of the Parliamentary Budget Office, warned in his latest report for August.

"The Greek government must continue implementing a responsible economic policy after the country's exit from the memorandum, and not change direction," he stressed, according to Greek national news agency AMNA. (1 euro = 1.14 U.S. dollars)